Key Takeaways
- On Holding exceeded Q1 projections with 831.9 million Swiss francs in revenue, marking a 14.5% increase year-over-year
- Adjusted earnings per share reached 0.37 francs versus the expected 0.27 francs
- Full-year gross profit margin guidance was upgraded to a minimum of 64.5%, up from the previous 63% target
- The Asia-Pacific region delivered the strongest performance with net sales surging 44.4%; China saw high-double-digit expansion
- Founders David Allemann and Caspar Coppetti assumed co-CEO roles, succeeding Martin Hoffmann
On Holding surpassed Wall Street’s first-quarter projections across both top and bottom lines, subsequently boosting its annual profitability forecast. However, the stock reversed an early premarket surge of over 6%, with ONON trading down approximately 3.2% at the most recent check.
Quarterly net sales reached 831.9 million Swiss francs, representing a 14.5% climb from the prior-year period and marking the first instance of On surpassing the 800 million franc mark in any single quarter. When adjusted for constant currency, the growth rate jumped to 26.4%.
Adjusted earnings per share landed at 0.37 francs, significantly exceeding the analyst consensus of 0.27 francs. Reported net income totaled 103.3 million francs, nearly doubling the 56.7 million francs recorded in Q1 2025.
Direct-to-consumer sales increased 16.4% to 322.3 million francs — though this figure came in marginally below the 326 million franc projection. Wholesale revenue, which typically yields thinner margins, advanced 13.3% to 509.6 million francs, surpassing the 499 million franc estimate.
Asia-Pacific Drives Momentum with China Leading the Charge
The Asia-Pacific territory emerged as On’s top-performing region during the quarter, with net sales soaring 44.4% to 174 million francs — translating to 61.4% growth in constant currency. EMEA recorded 22.8% growth while the Americas posted a 3.1% increase, or 17.1% when currency-adjusted.
China delivered particularly impressive results. The market is experiencing high-double-digit percentage growth, with apparel accounting for approximately 30% of China’s revenue mix — a sharp contrast to the roughly 6% apparel penetration across the entire company. This performance stands in notable opposition to Nike’s recent struggles in the region, where domestic brands have been capturing market share.
Co-CEO Caspar Coppetti attributed On’s success to its European heritage connecting with Chinese buyers. “We’re Swiss and so the high quality, the attention to detail, really resonates,” he explained to CNBC.
On’s adjusted EBITDA climbed 45.4% to 174.3 million francs. The adjusted EBITDA margin expanded substantially to 21.0% from 16.5% in the year-ago quarter.
Guidance Elevated Despite Tariff Question Marks
For fiscal 2025, On projected revenue of 3.51 billion francs — suggesting constant currency growth of no less than 23%. This guidance landed marginally under the Street consensus of 3.54 billion francs.
The athletic footwear maker elevated its gross profit margin forecast to a minimum of 64.5%, up from the earlier projection of 63%. Adjusted EBITDA margin expectations were also raised to a 19.5%–20% range, surpassing the previous 18.5%–19% band.
On’s forward projections continue to incorporate a 20% tariff on Vietnamese imports, despite a U.S. Supreme Court decision effectively eliminating that levy. The company has filed for reimbursement but characterizes the situation as evolving. Coppetti remarked that even if tariff relief materializes, the financial effect would be “immaterial.”
Immediately before the quarter concluded, On revealed a management transition. Co-founders David Allemann and Coppetti assumed co-CEO responsibilities, replacing Martin Hoffmann, who had served as the company’s principal representative to the investment community. The firm characterized Hoffmann’s departure as a “planned hiatus.”
ONON shares are down approximately 27% year to date prior to this earnings release.
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